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LONDON, October 11 /CNW/ - Fox Petroleum Inc. (OTC BB: FXPE - News)
(hereafter "Fox Petroleum") is pleased to announce the signing of an agreement
entering into a 22.5% joint venture interest in the Multi-Pay Gas Well called
the Spears Gas Unit 2, Well #1 in the Gomez Field, Pecos County, Texas. In
consideration for the 22.5% joint venture interest in the well, Fox Petroleum
is paying US$500,000 to acquire 22.5% of the Trius 72.75% working interest in
the Spears Gas Unit 2, Well #1.
Fox Petroleum has signed the agreement with Trius Energy LLC to partner
with them, Lakehills Production, Inc and Hunt Oil among others, on the
reopening of the Spears Gas Unit 2, Well #1 in the Gomez Field of Pecos County
Texas, with an estimated spud of November 15th, 2007. The Spears Gas Unit
neighbours a number of well known producers of Oil and Gas including
Chesapeake Energy(NYSE: CHK), Chevron(NYSE: CVX) and Cimarex Energy(NYSE: XEC).
About the Spears Gas Unit 2
The Spears Gas Unit 2, Well #1 has produced over 23BCF of natural gas,
which equates to US$149,500,000 at current market prices (Reference - Trius
Energy's Prospectus, September 7, 2007). According to evaluation by Trius
Energy LLC, in association with Stratco Operating Co. MC, the Spears Gas Well
could potentially produce 3,000 MCFGPD or greater (www.triusenergy.com), which
is supported by data review of the Composite Borehole Compensated Sonic Log,
Gamma Ray &amp; Sidewall Neutron Porosity Log, extensive reservoir analysis and
recent field data.
Richard Moore, CEO of Fox Petroleum states, "We are excited to be
participating in this joint venture with US renowned partners who include
Trius Energy and Hunt Oil. The Spears Gas 2 Unit has an impressive history of
production, and is part of a well known and well understood gas producing
trend that has experienced a very successful reactivation program over the
last few years. We anticipate re-entry work to commence within this quarter,
and look forward to the possibility of our first production well."
Alex Craven, Vice President, Finance said, "We see this as an excellent
opportunity for Fox Petroleum to generate short term revenue, commence
production and hopefully book reserves. Having the revenue potential to cover
the investment in a matter of months makes this is a very significant venture
for us. We hope to achieve the success of both our partners and neighboring
oil and gas production companies."
Further Information
Shareholders and prospective investors are encouraged to visit Fox
Petroleum's website: www.foxpetro.com and download Fox Petroleum's Investor
Summary. Please feel free to call investor relations toll-free at
1-888-369-4744 to receive a full corporate investor's package.
About Fox Petroleum
Fox Petroleum Inc. is an Oil and Gas Exploration Company headquartered in
London, England, the financial capital of Europe. Fox Petroleum also has an
operations office in Anchorage, Alaska. Fox Petroleum's current projects
include mineral rights to 32,000+ acres in Alaska's North Slope estimated to
represent a potential of up to 160 million barrels of oil (LAPP Resources,
Inc.), and the rights to a 33.33% ownership stake in a 37,000+ acre UK North
Sea license which could potentially hold up to 213 million barrels of oil
(TRACS International Ltd). The Company's shares are publicly traded on the OTC
BB under the ticker symbol FXPE.
On behalf of the Board of Directors
FOX PETROLEUM INC.
"Alex Craven"
Alex Craven, Vice President, Finance
NASD OTC BB: FXPE
Legal Notice Regarding Forward-Looking Statements in this news release
that are not historical facts are forward-looking statements that are subject
to risks and uncertainties. Forward-looking statements are based on current
facts and analyses and other information that are based on forecasts of future
results, estimates of amounts not yet determined and assumptions of
management. Forward looking statements are generally, but not always,
identified by the words "expects", "plans", "anticipates", "believes",
"intends", "estimates", "projects", "aims", "potential", "goal", "objective",
"prospective", and similar expressions or that events or conditions "will",
"would", "may", "can", "could" or "should" occur. Information concerning oil
or natural gas reserve estimates may also be deemed to be forward looking
statements, as it constitutes a prediction of what might be found to be
present when and if a project is actually developed.
Forward-looking statements in this news release include that our mineral
rights in Alaska's North Slope is estimated to contain a potential of up to
160 million barrels of oil; that UK North Sea license which we own a 33.33%
ownership could potentially hold up to 213 million barrels of oil; that the
Spears Gas Well is estimated to be spudded within this quarter of 2007 or
could become Fox Petroleum's first production well; that acquisition of the
22.5% joint venture interest in the Spears Gas Well could result in short term
revenue, production or bookable reserves; that the revenue potential of the
Spears Gas Well could cover the investment in a matter months; that Spears Gas
Well could potentially produce up to 3,000 MCFGPD or greater.
Actual results may differ materially from those currently anticipated due
to a number of factors beyond the reasonable control of the Company. It is
important to note that actual outcomes and the Company's actual results could
differ materially from those in such forward-looking statements. Factors that
could cause actual results to differ materially include misinterpretation of
data, inaccurate estimates of oil and natural gas reserves, the uncertainty of
the requirements demanded by environmental agencies, the Company's ability to
raise financing for operations, breach by parties with whom we have
contracted, inability to maintain qualified employees or consultants because
of compensation or other issues, competition for equipment, inability to
obtain drilling permits, potential delays or obstacles in drilling operations
and interpreting data, the likelihood that no commercial quantities of oil or
gas are found or recoverable, successful closing of the acquisition of joint
venture partnership interest in the Spears Gas Well, and our ability to
participate in the exploration of, and successful completion of development
programs on, the Spears Gas Well. Additional information on risks for the
Company can be found in filings on Edgar of other junior oil and gas
exploration companies with the US Securities and Exchange Commission.